Millennials, also known as “Generation Y”, are those born between the 1980s to the late 1990’s. You hear time after time that Millennials face financial challenges due to student loans and limited jobs. This results in questions like “Can they achieve homeownership?” or “Is owning a home still a part of the American Dream?”, targeted towards this age group.
We wanted to get first hand answers from a few of our Lennar associates who fit in the Millennial category, and get their perspective on home buying. We learned that they all have a plan to eventually own a home, but are each taking different routes to get to that point in their life.
Get to know April, Kaitlin and Lindsay and see their favorite Lennar dream home show above their name.
April (26 years old)
What is your current living situation and why?
I currently live with my parents in their home; this is actually the second time I have moved back in with them. When I graduated college, I needed a free place to stay till I found a job. I started a career in the petroleum industry and lived with my parents for a year to save up rent and emergency funds, after which I moved into a single apartment for a year and a half. When the oil and gas market took a bad turn earlier this year, I was laid off and could no longer afford to live in my apartment; fortunately, my parents – my heroes – brought me back under their roof.
Though I now work for Lennar, I have come to an agreement with my parents that I will continue living with them until I have saved up enough money for a new car, followed by a healthy reserve fund with which to afford independent living arrangements further down the road – not another apartment.
What future living arrangements do you have in mind?
Personally, I would love to have a home somewhere away from the city, a little closer to the country, closer to my horse; yes, I have a horse, and caring for a large animal is no piece of cake when you live in an apartment with annual rent increases. My dad, on the other hand, believes that if I want to avoid rent fiascos and acquire equity, a condo would be ideal.
Would you prefer to live in the city, suburbs, or country?
I would prefer to live in the country. I do not want to be so far from civilization that I feel isolated, but just far enough to be surrounded by trees and wildlife; have a big green pasture for my horse and his pasture-mate to run in; and smell clean air – I hate city smog! I like the small-town country areas, with the city life about 45 minutes away.
For now, though, I will probably settle on the idea of a condo, like my dad suggested. It will not be in the heart of a city, but somewhere along the outskirts, with the barn no more than a 30-minute drive away.
How do you hope to achieve that goal?
Once I have saved up for a new car, I will begin saving up for the condo. I have not begun researching potential places yet; I like to focus on one thing at a time, and the car is front and center, until it takes a temporary backseat to horse-related expenditures and birthday/wedding/baby shower/holiday shopping commitments. I am hoping my dad will assist me in this endeavor of acquiring a condo though; our family is very good about taking care of each other.
What community features are you looking for in a condo?
Sadly, I am constantly running around on a daily basis to get things done; the idea that I might be able to use community features at a condo is unlikely. However, if I found the time, I would like there to be a swimming pool, a park, and possibly a gym. Aside from the recreational features, convenient, well-lit and secure parking areas are a must!
Kaitlin (26 years old)
What is your current living situation and why?
I am currently living with my parents in order to save up money and build my own home. I worked through college and paid for my own tuition so I had very little savings in the bank. I also had to buy a car which depleted my savings my first year out of college therefore I was starting all over again. My relationship with my parents is very easy going so it’s not hard to go about my daily life living under their roof.
What future living arrangements do you have in mind?
My boyfriend and I are currently saving money together to build a townhome on an empty homesite just east of downtown Houston. We have a homesite picked out and are going through the purchasing process. We will continue to save for a couple of years until we are ready to jump into the construction aspect of the home.
Would you prefer to live in the city, suburbs, or country?
I have lived in the suburbs my whole life and enjoyed the time there but I have always wanted to live full time in the city. Houston has been renovating itself for the past 5-8 years and I love being close to everything like parks, concert venues, shopping, restaurants and entertainment.
How do you hope to achieve that goal?
I hope that my saving habits will help me reach my goal sooner. Since I paid my college tuition each semester I don’t have a loan except for my car which will be paid off soon. I have learned how to be frugal and splurge where I feel it’s fine.
Lindsay (22 years old)
What is your current living situation and why?
I’m currently living with my parents because I decided it would be smart for me to save up as much as I can before I move out. This way I can save up for a new car, as well as save for my future living expenses. And honestly, homemade meals aren’t always as bad thing!
What future living arrangements do you have in mind?
My boyfriend and I plan to rent an apartment together in the spring. After renting for a year or two (maybe more), we hope to purchase a home together.
Would you prefer to live in the city, suburbs, or country and why?
I’d prefer to continue living in the suburbs. I’ve always lived in the suburbs, so it has always felt like home to me. I’m close to all of the stores and restaurants that I shop and eat at, and if I want to experience the city life, I am just a 45-minute drive away. I feel that the suburbs are a perfect middle ground for my lifestyle.
How do you hope to achieve that goal?
I will continue doing what I am doing now which is saving a lot! This way, when I move out I can feel confident about paying my rent and also have savings set aside for the future.
What would change your mind from renting an apartment to owning a home?
I plan to buy a home in the future, but as of right now, the only thing that would change my mind from renting to owning would be having a long-term plan. In the meantime, renting an apartment will allow my boyfriend and I to have a temporary home until we figure out our future plans!
